AW16 Reducing void turnaround can lean thinking help?
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1 Sponsored by AW16 Reducing void turnaround can lean thinking help? Speakers: Andrew Schofield / Roger Parker Partners Lean Housing Solutions Greg Lakin Head of Maintenance Services Solihull Community Housing Chair: Rachel Fisher Head of Homes and Land National Housing Federation
2 Voids - A lean perspective
3 Voids some context Voids and lettings typically cost 5% of Revenue For a 8000 property business 2000 repair cost 28 day turnaround 2.5 million per annum
4 Targets in Voids and Lettings Targets do they help or hinder Opportunities to improve Benefits - For everyone
5 What are targets for To give direction Right Targets Right direction Wrong Targets??!!
6 Measures and Behaviour What get measured, gets managed Measurement Drives Behaviour Can Drive Wrong Behaviour! Departmental Targets drive Departmental Behaviour and conflict!
7 What s wrong with Turnround Time? Turnround time is an Indicator a reflective measure, and good for comparison When set as a target many ways to achieve Ways of measuring Include / exclude Lower the quality Doesn t challenge Why does it take 28 days? Why is the repair cost so high?
8 What s important Whole picture end to end Pace and direction of travel ( improvement) Balance Customer ( s) Business ( es) Staff
9 Target Setting and the improvement process Ideal Target? Current Performance? Interim Target? 50 / 20 Continuous Improvement Target? 10% p.a.
10 Customer First - Customer Value in Voids? Customer? What do they value? How long? Perfection New tenant Sign up & keys 1 hour Back to back no cost
11 Deployment and Accountability who Owns the target? Measure Target Housing Lettings Repairs Empty Homes Terminations Time to let Time to Repair Repair Cost Tenant Satisfaction
12 Opportunity 50 / 20 Halving the Turnaround Time Halving the Repair Cost Do it 20% more efficiently
13 Sponsored by AW16 Reducing void turnaround can lean thinking help? Speakers: Andrew Schofield Senior Partner Lean Housing Solutions Greg Lakin Head of Maintenance Services Solihull Community Housing Chair: Rachel Fisher Head of Homes and Land National Housing Federation
14 NHF Asset Management and Maintenance Conference 2013 Reducing Void Turnaround, Can Lean Thinking Help?
15 Session Overview Solihull Community Housing Profile. Void Delivery Profile - Context Our Lean Journey Key Outcomes from the Process Going Forward 2013 /14 Discussion
16 Solihull Borough o Southern Edge of West Midlands o A Borough of significant contrasts o 3 distinct areas North Regeneration zone, Urban West, West Rural area o North has some wards amongst the most deprived nationally o Other areas of the Borough are amongst the most affluent nationally o Population = 201k o Total number of homes = 87,948 o Owner occupied : 79%, Council rent: 12.2%
17 Solihull Community Housings - Managed Stock Bungalow % House % Low Rise flat % Maisonette 71 1% High rise flat % 10,211 o Flats make up 50% of the stock o 70% of the stock in the north of the Borough o 60% of the stock is of non-traditional construction o 67% of the stock built between
18 Void Delivery - Context Mixed delivery model in-house and Specialist Contractors Delivery focus - no internal Client / Contractor split. Number void properties 2012/ Unless stated to the otherwise SCH voids include for: All works to return the property back to a fit to let condition.
19 Void Delivery - Context Customer satisfaction with relet properties 92% Average turn around time 18 days May 2013 Repairs turn around time 9 days May 2013 Average unit cost range DLO Expenditure Per Void Productivity: 105 voids per operative per year DLO Resource - 9 Operatives
20 Our Lean Journey (Turnaround Days) End to End 58 Keys to Keys End to End 35 End to End 28 End to End 29 End to End 22 End to End 19 End to End 22 End to End
21 Our Lean Journey (Turnaround Days) Repairs 25 Keys to Fit to Let Repairs 15 Repairs 16 Repairs 16 Repairs 12 Repairs 12 Repairs
22 Our Lean Journey Savings (Rent Loss) Average Turnaround Time in Days Average rent per day Completed Void Properties Estimated Current Rent Loss ,395 Potential Rent Loss Reduction ,513 10, ,631 21, ,750 32, ,868 43, ,987 54, ,105 65, ,224 76,171
23 Our Lean Journey (Turnaround Days) End to End ,460. Impact of Step Change End to End ,702. End to End 28 End to End 29 End to End 22 End to End 19 End to End 22 End to End
24 Our Lean Journey Savings (The Big Hits) Lean Reviews (Where was the waste) Strong working relationship with Solihull Homes Options Team. (One Team Approach) Weekly target resetting and monitoring. Real Time Monitoring. Introduction of hand held technology Workforce undertook surveying function to meet SCH s relet standard.
25 Our Lean Journey Savings (Big Hits) Lean Reviews (Where was the waste) Surveyors started to undertake pre termination visits. Include disrepair survey for recharging. Remapping workforce and staff areas of responsibility. Introduction of trained tenant Inspectors. Voids Team develop DIY Course with Local College. Stop the process flags.
26 Our Lean Journey Savings Lean Reviews (Fire Precautions Work) Change in SCH s Fire Precautions Policy resulted in increased costs and time for preventative works within high and low rise flats. Lean process were instrumental in reviewing resource approach and specialist materials to mitigate overall impact. Outcome forecasted 180k budgetary overspend reduced to 89k through Plan,,Do, Check, Act process. Targeted operations manual for teams.
27 Key Outcomes from the Process Lean thinking is being used as the norm as a C.I tool. Tangible service improvements for our customer in terms of product quality and delivery Reduction of rent loss. Review of materials expenditure (Right Product, Right Place, Right Time) Meaningful monitoring. Workforce empowerment and cultural shift. Tenant Inspectors: Voids used as a stepping stone to improving employment prospects of voluntary tenant inspectors. Benefits of engagement with customer base. Progressive reduction in turnaround times. (14 days target 2014) Reduced dependency on Lean Solutions consultancy
28 Going Forward 2013 /14 Voids Review Planned for February 2014 to enable a 14 day turnaround time. Assess the impact of Welfare Reform on void patterns and property type. Investigating the benefits of post voids works
29 For Further Information: Greg Lakin MRICS, MCIOB, PgDMS Solihull Community Housing Head of Maintenance Services Team
30 Some Statistics The billion business in England Rent Loss 25,000 homes at 4000 per year Repair costs 200,000 at 2000 Staff Costs 3000 at 25,000 Local Authority Cost 100million 400 million 75 million 400 million 25,000 bed and breakfast nights at 45 Tenants Discomfort, anxiety, confusion
31 Opportunity 50 / 20 So what are we going to do next? Get the right measures in place Get in control of repairs Work with Housing reduce the need to do the repairs!
32 Sponsored by AW16 Reducing void turnaround can lean thinking help? Speakers: Andrew Schofield Senior Partner Lean Housing Solutions Greg Lakin Head of Maintenance Services Solihull Community Housing Chair: Rachel Fisher Head of Homes and Land National Housing Federation
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